P17-14 (similar to) Determining valuesConvertible bond Craig's Cake Company has an outstanding issue of 22-year convertible bonds with a $1,500 par value. These bonds are convertible into 80 shares of common stock. They have a 15% annual coupon interest rate, whereas the interest rate on straight bonds of similar risk is 17%. a. Calculate the straight bond value of this bond. b. Calculate the conversion (or stock) value of the bond when the market price is $13 per share of common stock. c. What is the minimum market value of the bond